5 Reasons to Keep your Money at a Credit Union (2024)
Trying to decide where you should keep your money? Or maybe you’re keeping your money at a big bank and are ready to stop paying more for less. This guide will tell you five reasons why you should ditch your bank become a Member-Owner of a Credit Union today!
1. Credit Unions Have an Emphasis on Customer Service
A credit union is a cooperative, meaning that it is owned and operated by its members, and is not owned by its stockholders like a bank. This means that credit unions typically have better customer service support because they’re made by members, for members.
Because credit unions are nonprofits, their motives are different than big banks. Rather than prioritizing profits over people, Credit Unions are looking to put their profits back into the institution, not into the pockets of wealthy shareholders.
3. Better Loan Rates
Like we hinted at in the last reason, Credit Unions are known to have better and lower loan rates compared to big banks because our profits go right back to our members in the form of great deals. Expect lower interest rates and bigger returns with a Credit Union. Don’t believe us?Take a look at our interest rates and see for yourself!
4. Insurance
Your money is safer in a Credit Unions hands because all accounts are federally insured up to $250,000 and backed by the U.S. government.
The main benefits of a credit union compared to a bank are that credit unions tend to offer better rates, better customer service, and lower fees. However, banks may offer more branches and products than credit unions.
Credit unions are financial co-operatives where members can save and lend to each other at fair rates of interest. They are non-profit organisations that have a volunteer ethos and community focus. You can become a member of a credit union if you have a common bond with other members.
The five largest credit unions are Navy Federal Credit Union, State Employees' Credit Union, PenFed Credit Union, SchoolsFirst Federal Credit Union and Boeing Employees Credit Union.
Credit unions tend to offer lower rates and fees as well as more personalized customer service. However, banks may offer more variety in loans and other financial products and may have larger networks that can make banking more convenient.
"On average, credit unions pay higher interest rates on savings deposits than traditional banks. Credit unions are structured as non-profit institutions, allowing the reinvestment of profits back to members, including higher interest rates on high-yield savings and CDs," says Dr. Cherry.
However, because credit unions serve mostly individuals and small businesses (rather than large investors) and are known to take fewer risks, credit unions are generally viewed as safer than banks in the event of a collapse. Regardless, both types of financial institutions are equally protected.
The importance of saving money is simple: It allows you to enjoy greater security in your life. If you have cash set aside for emergencies, you have a fallback should something unexpected happen. And, if you have savings set aside for discretionary expenses, you may be able to take risks or try new things.
With a credit union, you might have to do some extensive research to compare accounts and find out what services they offer. Credit unions only serve certain groups of people and if the ones you can join don't have mobile banking or their apps aren't up to par, that could potentially be a major disadvantage.
Credit unions operate to promote the well-being of their members. Profits made by credit unions are returned back to members in the form of reduced fees, higher savings rates and lower loan rates.
Credit unions tend to offer lower rates and fees as well as more personalized customer service. However, banks may offer more variety in loans and other financial products and may have larger networks that can make banking more convenient.
Membership is restricted. The membership of a credit union is restricted to a specific community, most often a religion, profession, or geographic location.
Introduction: My name is Pres. Lawanda Wiegand, I am a inquisitive, helpful, glamorous, cheerful, open, clever, innocent person who loves writing and wants to share my knowledge and understanding with you.
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